EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Look Strong Overall

EUR/USD Technical Analysis

The euro bounced a bit against the US dollar during the early hours on Friday and as you can see the market has been hanging around the 1.05 level. With this, I think you have to look at this through the prism of whether or not anything has changed and I don’t necessarily think it has.

Yes, we got the ECB cutting rates. They sound dovish, but we already knew that. The Federal Reserve probably will cut rates by 25 basis points. We already know this, and at this point in time, I bet we’re waiting to see what statement is coming out of the Fed. So, I expect a continuation of the consolidation that we have seen.

USD/JPY Technical Analysis

The US dollar is very strong against the Japanese yen, however, and I think you’ve got a situation where the market is more likely than not going to pull back a little bit and continue to go higher. This market has recently shot straight up in the air, pulled back to the 150 yen level, only to turn around and see buyers jump back into the fray. Now, I would anticipate that they will try to get this pair to go looking toward the 156 yen level.

AUD/USD Technical Analysis

And finally, in the Australian dollar, we continue to bounce around near the extreme lows at 0.6350, that does extend down another 100 pips, and we are without a doubt in a very, very precarious area. If you look at the weekly candlestick, you can see just how anemic the Aussie looks. At this point, I think it is still going to be a situation when we get bounces, there will be plenty of people above willing to sell this pair and therefore I remain bearish, but I don’t necessarily want to jump in and start shorting here.

I’d like to have at least a little bit of room for the US dollar to appreciate, and the only way it’s going to get that is if we bounce. The Aussie has attempted several bounces as of late, all of which have failed most of the time within 24 hours.

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